QuickBooks Payroll and Employee Setup

Before getting into the nuts and bolts of actually setting up employees, here is an examination of the two accounts that QuickBooks sets up when you turn on payroll. You’ll see that QuickBooks can do so much more than simply set up a roster of the people who work for you. QuickBooks creates vitally important accounts that help you keep track of all employee deductions, in addition to making it easy for you to make sure all that money gets sent to the correct agency.

Understanding Payroll Expenses and Payroll Liabilities

When you issue paychecks, each of these payroll accounts has its balance decreased or increased as is appropriate. If you create additional payroll items (union dues, voluntary employee deductions such as United Way, or 401K plans, for example), QuickBooks assists you in choosing the right account. Here’s why, and here’s what’s at stake: